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PARIS -- German industrial company Siemens AG on Tuesday agreed to merge its rail operations with French train-maker Alstom SA, aiming to create a European giant with the scale to fight growing competitive threats from state-backed Chinese rivals.

General Electric Co. agreed to sell its industrial-solutions business to Switzerland's ABB Ltd., a sign that GE's new chief is moving ahead with efforts to streamline the industrial giant. ABB will pay for $2.6 billion for the GE unit, which makes electrical equipment for utilities, with the aim of strengthening its presence in the electrification market, where is number two globally behind France's Schneider Electric SA, particularly in North America.

General Electric Co. agreed to sell its industrial-solutions business to Switzerland's ABB Ltd., a sign that GE's new chief is moving ahead with efforts to streamline the industrial giant. ABB will pay for $2.6 billion for the GE unit, which makes electrical equipment for utilities John Flannery, who took over as GE's CEO on Aug.

Swiss industrial conglomerate ABB Ltd. ABB.SK said Monday it will buy General Electric Co.'s GE Industrial Solutions unit for $2.6 billion. The acquisition will expand ABB's access to the North American market and has the potential to save around $200 million a year in cost synergies within five years, the company said.

German industrial giant Siemens AG and French train-maker Alstom SA are in talks to create a European rail transportation powerhouse to better rival strong competition from China. France's Alstom, which makes trains and buses, said Friday it was in discussions to combine its operations with the mobility unit of Siemens.

General Electric Co. said it will shut down its corporate jet fleet Wednesday in a cost-cutting move, according to a report from The Wall Street Journal, which cited a person familiar with the situation. The industrial conglomerate, which has seen its stock underperform its peers and the broader market by wide margins this year, will still operate some helicopters, other aircraft overseas and will use charter services as needed, the WSJ report said. GE's stock gained 0.6% in morning trade. It has advanced 2.6% since closing at a 2-year low of $23.72 on Sept. 11, was still down 22.9% this year, to pace the year-to-date decliners in the Dow Jones Industrial Average by a wide margin. The SPDR Industrial Select Sector ETF has rallied 13.0% year to date, while the Dow has climbed 13.3%.

Sep. 20, 2017 at 11:50 a.m. ET

by Tomi Kilgore

General Electric to shut down corporate jet fleet in cost-cutting move--WSJ

General Electric to shut down corporate jet fleet in cost-cutting move--WSJ

Shares of General Electric Co. sank 1.4% in midday trade Tuesday, after J.P. Morgan analyst Stephen Tusa reiterated his bearish view on the industrial conglomerate, suggesting that just because the stock keeps getting cheaper doesn't make it more attractive. Tusa kept his rating at underweight, which he's had on the stock since May 2016, and his stock price target at $22, which is 8.8% below current levels. He said as the stock's weakness continues, investors and analysts appear to try to create a bullish narrative, based mostly on how far the stock has fallen and underperformed its peers and the broader market, but analysts have been careful not to raise their ratings. "We believe this defines sentiment on the stock, which is somewhere between somewhat negative, and what we would characterize as 'chicken bullish,' with a common theme [that] it's not that bad, understandable in the context of a sector that typically mean reverts," Tusa wrote in a note to clients. "This is essentially a denial that fundamentals could be this bad, and there is nothing that simple cost saves can't take care of, something that was not obvious to the previous 15 years of management." The stock, which closed at a 2-year low of $23.72 on Sept. 11, has tumbled 24% so far this year, while the Dow Jones Industrial Average has climbed 13%.

Shares of General Electric Co. slumped 1.5% in premarket Thursday, after J.P. Morgan analyst Stephen Tusa reiterated his underweight rating on the industrial conglomerate, saying the outlook is even worse than he thought. While he has a $22 price target on the stock, which is 12% below Wednesday's closing price of $24.92, Tusa said he sees "something in the high teens" as an investable fair value for the shares. He said he believes GE is "tight on cash," but while the dividend appears safe "for now" he believes the share buyback program is "fungible." He said his more bearish view is "an adjustment to reality, not cyclical," as structural weakness in GE's power business, a less-than-expected bounce in oil and gas and transportation and a more GAAP approach to reporting numbers provides downside risk to earnings expectations. "Based on our standing [free cash flow] estimates and estimates for outflow from investing activities, GE is already below breakeven when it comes to funding the dividend with ongoing FCF, with compounding risk if fundamentals come in worse that expectations," Tusa wrote in a note to clients. The stock has tumbled 21% year to date, while the SPDR Industrial Select Sector ETF has gained 9.1% and the Dow Jones Industrial Average has climbed 10%.

Sep. 7, 2017 at 8:15 a.m. ET

by Tomi Kilgore

General Electric's stock falls 1.2% in premarket trade

France's Schneider Electric SE has agreed to take control of British engineering software provider Aveva Group PLC, the latest move by an industrial giant toward writing the software that will run the factories and machines of the future.

German industrial giant Siemens agreed to merge its rail operations with French train maker Alstom SA, aiming to create a European giant with the scale to fight growing competitive threats from state-backed Chinese rivals.

General Electric Co. is in danger of losing one of its largest industrial contracts after a political shake-up in India, highlighting the risk of the conglomerate’s chase to win business in far-flung markets by investing heavily in local operations.

General Electric agreed to sell its industrial-solutions business to Switzerland’s ABB in a $2.6 billion deal, a sign that GE’s new chief is moving ahead with efforts to streamline the industrial giant.

Richard Smith took over as chief executive of Equifax 12 years ago this week. Under him, Equifax’s market value more than quadrupled as the credit-reporting company became a data giant—before a systems breach raised questions about the company and its leader.

The crisis has sent shock waves through the industry, spooked consumers and sparked investigations. A focus for inquiry is a software glitch that appears to be how the intruders got into the company’s systems.

Questions are emerging over how antitrust authorities will treat the deal between United Technologies and Rockwell Collins, amid a debate over whether the tie-up will drive up costs in the aerospace industry.

President Trump this week lauded what he described as a deal to sell between $10 billion and $20 billion worth of aircraft and jet engines to Malaysia’s flag carrier. Hours later, the deal was said to be worth much less.

Recent News

German industrial giant Siemens agreed to merge its rail operations with French train maker Alstom SA, aiming to create a European giant with the scale to fight growing competitive threats from state-backed Chinese rivals.

General Electric Co. is in danger of losing one of its largest industrial contracts after a political shake-up in India, highlighting the risk of the conglomerate’s chase to win business in far-flung markets by investing heavily in local operations.

General Electric agreed to sell its industrial-solutions business to Switzerland’s ABB in a $2.6 billion deal, a sign that GE’s new chief is moving ahead with efforts to streamline the industrial giant.

General Electric Co.

General Electric Co. is a technology and financial services company that develops and manufactures products for the generation, transmission, distribution, control and utilization of electricity. Its products and services include aircraft engines, power generation, water processing, security technology, medical imaging, business and consumer financing, media content and industrial products. The company operates through eight segments: Power, Oil & Gas, Aviation, Healthcare, Transportation, Appliances & Lighting and GE Capital. The Power segment serves power generation, industrial, government and other customers worldwide with products and services related to energy production. The Oil & Gas segment supplies mission critical equipment for the global oil and gas industry, used in applications spanning the entire value chain from drilling and completion through production, liquefied natural gas and pipeline compression, pipeline inspection, and downstream processing in refineries and petrochemical plants. The Aviation segment products and services include jet engines, aerospace systems and equipment, replacement parts and repair and maintenance services for all categories of commercial aircraft; for a wide variety of military aircraft, including fighters, bombers, tankers and helicopters; for marine applications; and for executive and regional aircraft. The Healthcare segment products include diagnostic imaging systems such as magnetic resonance, computed tomography and positron emission Tomography scanners, X-ray, nuclear imaging, digital mammography and molecular imaging technologies. The Transportation segment engages in global technology and supplier to the railroad, mining, marine and drilling industries. The Appliances & Lighting segment products include major appliances and related services for products such as refrigerators, freezers, electric and gas ranges, cooktops, dishwashers, clothes washers and dryers, microwave ovens, room air conditioners, residential water systems for filtration, softening and heating, and hybrid water heaters. The GE Capital segment offers financial services and products worldwide for businesses of all sizes, services include commercial loans and leases, fleet management, financial programs, credit cards, personal loans and other financial services. The company was founded by Thomas A. Edison in 1878 and is headquartered in Boston, MA.
(See Full Profile)

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